Question

If you place $2,000.00 in a savings account with an interest rate of 4.5%/month versus an account with a rate of 3.75%/month, how much more interest could you earn in that month using the first account

Answer 1

Answer:

You will get $15.00 more interest amount using the first account.

Step-by-step explanation:

You placed $2,000.00 in a savings account with an interest rate of 4.5% per month and $2,000.00 with an interest rate of 3.75% per month.

In this question we have to calculate the percentage of both to get the amount.

4.5% × 2,000 = $\frac{4.5}{100}$ × 2,000

= 0.045 × 2,000 = $90.00

3.75% × 2,000 =  $\frac{3.75}{100}$ × 2,000

= 0.0375 × 2,000 = $75.00

Difference in interest amount = 90.00 - 75.00  = $15.00

$15.00 more interest you could earn in that month using the first account.

Answer 2

You would be earning $15 more dollars using the first account, since the product of 2000×0.045= 90. where as the product of 2000×0.0375=75 due to the decrease in interest rate.